Here's What You Need To Understand If You Want Your Starter Hedge Fund To Survive
Lucky for them, however, Citi does not have the final word on this matter.
Looking for hope,
You just have to be smart about it, or you will fail. He's seen it time and time again. Traders may trade. Investors may invest, but an investment firm is more than its strategy.
"You have to be able to put together a budget together and commit yourself," said Rosenthal.
You have to be able to start a
At first, since your firm will be small, surviving is the game. Maybe you'll have a Bloomberg terminal, a few employees you'll need to work out payroll for, and a prime broker. Rosenthal advises that you "try to instill a culture of compliance early" , but the huge compliance headaches won't come until you've got $150 million AUM.
Until that time - the time when you can attract that sticky institutional or fund of funds money - you'll be working with fickle high net worth individuals. Try to work out a lock-in period if you can.
Even if you do get that though, plan a budget where you see yourself losing money for the first two years.
Yes, you're a star. You're a great trader. You're awesome. But you will still lose money.
"The first two years are critical," Rosenthal said. "You need good returns, a good message, and you'll need investors to promote you as well."
That means communicating with your investors clearly, and making sure they understand your strategy.
Before you try ANY of this, Rosenthal suggests you maybe set up a single member LLC to invest your own money for a year or so. Use a strategy you're good at. See how it goes.
It's a hard road ahead of that, and you've got to crawl before you can walk.
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- India legend Yuvraj Singh named ICC Men's T20 World Cup 2024 ambassador
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market